The hidden cost of smart buildings

Sunil Chand Sunil Chand

Asset management issues for boards

Across the world, tenants have increasing expectations of intelligent buildings providing them access to technology and automated systems—from online storage to health and safety, communications, climate control, lighting, security and more.

The market for smart buildings in the Americas is expected to reach US $8.84 billion by 2021. As an asset owner, huge gains can come from the automation and optimization of services and increasing the sustainability rating of the asset.

Despite adding value, the increased connectivity of these smart services can have a negative side. They can expose those who occupy them to a higher risk of cyber attack through “disruption of service” or potential gateways to data. For building owners and operators, it’s a classic trade-off between value and risk. Any investments in smart buildings and services needs to include the appropriate consideration of cybersecurity.

The threat exists for all asset classes across the real estate industry: office and apartment blocks, data centres, industrial sites, and even public spaces like hospitals, universities, hotels and shopping centres.

Cyber risk management and data protection need to be key elements of the investment in smart buildings at all stages of the asset lifecycle. Securing your asset against cyber attacks is about ensuring your ability to get the right return on your investment in a smart building.

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Understanding cyber risk for asset managers and owners hidden cost smart buldings cover

Real estate and cybersecurity

Sunil G. Chand, National Leader, Cybersecurity

“Real estate businesses must ask themselves: ‘As property owners, are we using due diligence properly to prevent our building’s systems from being a point of entry for hackers into larger organizations?’”